The benchmark BSE Sensex fell 298 points on Wednesday due to offloading of positions by participants in view of monthly expiry in the derivatives segment amidst sustained capital outflows.
The 30-share barometer, which had lost 195.33 points in the previous session, moved further down by 297.85 points to 27,208.61.
Also, the National Stock Exchange index Nifty shed 92.90 points to 8,174.10.
Brokers said squaring-up of positions by speculators as today being the last trading session of December expiry and persistent selling by foreign funds, influenced sentiments.
However, Asian markets mostly rose today, after stellar growth figures from the world`s top economy powered US shares to record highs.
Tokyo led gains, adding 1.24 per cent, or 219.09 points, to close at 17,854.23. Seoul put on 0.39 per cent, or 7.59 points, to end at 1,946.61.
Australia and Hong Kong both ended slightly higher after thin trading in holiday-shortened sessions.
Sydney rose 0.25 per cent, or 13.6 points, to close at 5,394.5 while Hong Kong inched up 0.08 per cent, or 17.54 points, to 23,351.23.
But Shanghai fell 1.98 per cent, or 60.08 points, to end at 2,972.53, adding to one of its biggest percentage falls of the year on Tuesday.
Figures showing US gross domestic product grew at 5.0 per cent year-on-year in the third quarter — up from the previous estimate of 3.9 per cent and well above analyst predictions of 4.3 per cent — lit a fire under world equity markets.